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Bill

A 4454

Relates to establishing a first permanent payroll employee tax credit

2025 Regular Session Introduced by Andrew Molitor

Establishes a first permanent payroll employee tax credit to spur hiring and retention of the first permanent payroll positions, benefiting employers while reducing state revenue.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 4454

Summary of Bill A 4454 — Relates to establishing a first permanent payroll employee tax credit

Overview

  • Bill Number: A 4454
  • Title: Relates to establishing a first permanent payroll employee tax credit
  • Status: REFERRED TO WAYS AND MEANS
  • Introduction date: February 4, 2025
  • Primary sponsor: Andrew Molitor
  • Version actions: Both listed actions show “2025-02-04: REFERRED TO WAYS AND MEANS”
  • Related bills: A 9049, A 4871, A 1755 (prior-session); S 1301 (companion)

Purpose and intent

  • The bill would establish a new tax credit described as a “first permanent payroll employee tax credit.” While the specific statutory language is not provided here, the title indicates the credit is intended to incentivize payroll-related hiring, potentially focusing on creating or maintaining “first” permanent positions within an employer’s payroll.

Key provisions (subject to bill text)

  • The exact design of the credit (amount, eligible wages or payroll, duration, and who may claim the credit) is not included in the information provided. The bill would be expected to specify:
    • Eligibility criteria (e.g., employer size, industry, location, or other qualifications)
    • Definition of a “first permanent payroll employee” and what constitutes “permanent” status (full-time vs. part-time, term length, etc.)
    • Calculation method (credit amount, potential caps, refundable vs. nonrefundable)
    • Claim process (when and how employers claim the credit, auditability, required documentation)
    • Interaction with other credits or programs and any sunset or transitional provisions
    • Administrative agency responsibilities for administration, enforcement, and compliance

Note: The available materials do not include the bill’s text, so the above details are anticipated components typical of payroll-related tax credits and would be defined in the finalized language.

Affected entities and impact

  • Primary beneficiaries: Employers with payroll obligations who would hire or maintain first permanent payroll positions.
  • Potential effects: A reduction in state tax revenue corresponding to the value of the credit claimed; intended effect is to stimulate hiring of permanent positions and stabilize payrolls. Administrative requirements and reporting would add compliance obligations for employers and the department administering the credit.

Procedural and timeline aspects

  • Current status: Referred to Ways and Means, indicating the bill is at the committee stage for fiscal and policy review.
  • Next steps: Committee consideration, potential amendments, and then floor action in the chamber. If advanced, the companion Senate bill S 1301 may indicate cross-chamber consideration and potential negotiation between houses.
  • Related activity: Prior-session bills (A 9049, A 4871, A 1755) and companion S 1301 suggest ongoing interest in a permanent payroll-related tax incentive.

Notes

  • Without the full text, precise eligibility, credit amount, and implementation details remain unknown. Readers should review the enacted language and fiscal notes once the bill advances to understand its full impact.

Compiled from official sources — confirm details with the bill’s official record.

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